35 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
35
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Key Benchmarks at a Glance
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business*
Commercial P&C
9.1%
16.0%
18.6%
Personal P&C
5.3%
6.2%
6.9%
Group Medical
0.1%
2.7%
14.1%
All Other Group
-0.1%
*
*
Total Organic Growth
9.1%
10.4%
23.8%
Profit
Pro Forma Pretax Profit
28.3%
45.4%
30.6%
Pro Forma EBITDA
31.1%
46.5%
34.3%
Rule of 20 Score
24.7
33.8
36.4
Financial
Average
Top 25%
Current Ratio
2.25:1
3.87:1
Receivable/Payable Ratio
54.4%
-6.5%
Accounts Receivables > 60 Days
18.1%
2.9%
Accounts Receivables > 90 Days
7.9%
-1.8%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$136,820
$141,417
$146,938
Compensation per Employee
$76,399
$56,944
$79,608
Spread per Employee
$60,421
$84,472
$67,329
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$51,838
$93,642
Personal P&C
$24,511
$39,375
Life & Health/Financial
$37,257
$38,410
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
21.4%
3.6
Personal P&C
23.7%
3.5
Group Life & Health/Financial
33.0%
0.8
*Insufficient Data
*Excludes any acquired revenue